The Strong Buy recommendation, which was recently up graded from a Buy to for Facebook Inc (NASDAQ:FB) is grounded on a ranking in the company's sector group that is in the top quarter, a ranking in its industry group that is in the top quarter, a quantitative risk/reward calculation that is very attractive, and analytical scoring that is near average. The Strong Buy recommendation for FB stands out more as a result of being a component of an industry group and sector that are ranked well above average in attractiveness. FB is rated as a Strong Buy by means of the Portfolio Grader stock evaluator. With unique fundamental and quantitative metric based, this analytical tool evaluates nearly 5,000 stocks weekly. FB has been upgraded from a Buy to a Strong Buy in the last week.
The company is one of 91 companies within the Internet Software/Services GICS industry group, which is in turn part of the 324 company GICS Technology Services sector. FB has a market value of $553.0 billion which is in the top decile in its industry group Portfolio Grader's current ranking for FB puts it 10 among the 91 companies in this industry group, putting in the top quartile.
The Technology Services sector is ranked number 1 among the 20 sectors in the Portfolio Grader universe putting it atop all the GICS sectors. The Internet Software/Services industry group is ranked 21 among the 129 industry groups within the GICS sectors, placing it above-average in terms of the Proprietary Quantitative Score scoring system.
Facebook has received above-average scores in 4 of the 8 fundamental areas evaluated by Portfolio Grader in the ranking of company stocks.
FB's operational scores provide mixed results with a ranking for operating margin that is below the industry average, while the rankings for sales growth and earnings growth are above average. Scores for visibility of earnings are mixed, with rankings for earnings surprises and earnings momentum much worse than average, and a score for earnings revisions that is better than average. FB's ranking for return on equity is much better than its industry group average but its grade for cash flow is below-average. These fundamental scores give Facebook a position in the top half of the industry group.
Portfolio Grader uses the Proprietary Quantitative Score to gauge FB's shares from the aspect of risk/reward. This proprietary scoring system evaluates the relative value of the company's shares based on the recent $181.26 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Based on this risk/reward calculation, FB currently scores well above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.
